PERMANENT RULES
SOCIAL AND HEALTH SERVICES
(Economic Services Administration)
Date of Adoption: February 5, 2003.
Purpose: These rules are being simplified and consolidated to make it easier for clients to understand department policy regarding any resources they may own. Prior to this change, clients had to read many different WACs to find out how resources affect their eligibility for assistance. This change will simplify that process. With this change, we will also be eliminating the excess real property program in order to streamline program rules regarding the treatment of real property.
Citation of Existing Rules Affected by this Order: Repealing WAC 388-470-0010, 388-470-0015, 388-470-0020, 388-470-0025, 388-470-0030, 388-470-0035, 388-470-0050 and 388-470-0065; and amending WAC 388-470-0005, 388-470-0012, 388-470-0045, and 388-470-0055.
Statutory Authority for Adoption: RCW 74.08.090 and 74.04.510.
Adopted under notice filed as WSR 02-21-095 on October 21, 2002.
Changes Other than Editing from Proposed to Adopted Version: The following changes from the rules as proposed to the adopted rules were made because of comments received during the review period from both internal and external stakeholders.
| Summary of Changes | ||
| Throughout the various WACs |
• • |
The term "food assistance" was changed to
"basic food." The term "medical program for families" was changed to "family medical programs." |
| WAC 388-470-0005 |
• | Added subsection (3) to state that clients must try to make potential resources available in order to receive assistance. This requirement had been inadvertently deleted in the rewrite process. |
| • | Added (4)(c) to state that we count resources for medical applications as of the first day of the month of application. This requirement had been inadvertently deleted in the rewrite process. | |
| • | (14)(b): Added new text that clarifies how we treat joint resources for cash assistance, medical assistance, and basic food. | |
| WAC 388-470-0045 |
• | (1): Added the word "family" to clarify that this WAC is for family medical programs, not all medical programs. |
| • | (1)(a)(iv): Consolidated (iv), (v), and (vi) into one statement that states all available retirement funds or pension benefits are considered liquid resources. | |
| • | (1)(a)(vi): Added trust accounts as a liquid resource. | |
| • | (1)(f): Removed sales contracts, real estate mortgages, and security interest as liquid resources for both cash assistance and family medical programs. Sales contracts are countable liquid resources for cash assistance only. See (j). | |
| • | Added (1)(h) to state that personal property that is not a household good, needed for self-employment, or of "great sentimental value" is a countable resource. This requirement had been inadvertently deleted in the rewrite process. | |
| • | Added a new subsection (2) that lists liquid resources that are not counted. | |
| • | (3)(c)(iv): Added a clarifying statement that retains the exclusion for real property used by self-employed farmers and fishers for one year after that employment ends. | |
| • | Added subsection (4) that clarifies the treatment of excluded liquid resources placed into an account with countable liquid resources. This requirement had been inadvertently deleted in the rewrite process. | |
| WAC 388-470-0055 |
• | (1)(a)(vi): Removed simplified employer pension plans. These are not countable liquid resources for basic food. |
| • | (1)(a)(vii): Added trust accounts as a liquid resource. | |
| • | (2)(c)(iv): Added a clarifying statement that retains the exclusion for real property used by self-employed farmers and fishers for one year after that employment ends. | |
| • | (2)(c)(vi): Clarified that this specific exemption applies to real property that has an equity value less than half of the resource limit as described in WAC 388-470-0005. | |
| • | (2)(f): Clarified that the exemption for life insurance policies includes those policies with a cash surrender value. | |
| • | Added subsection (3) that clarifies the treatment of excluded liquid resources placed into an account with countable liquid resources. This requirement had been inadvertently deleted in the rewrite process. |
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 1, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 3, Repealed 8.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 4, Repealed 8.
Other Findings Required by Other Provisions of Law as Precondition to Adoption or Effectiveness of Rule: The
earlier adoption date is needed to prevent imminent harm to
department clients. If these rules are not adopted, needy
clients may be incorrectly denied benefits.
Effective Date of Rule:
March 1, 2003.
February 5, 2003
Brian H. Lindgren, Manager
Rules and Policies Assistance Unit
3178.5(2) A client may own and keep excluded resources or countable resources up to the resource limit.
(3) For SSI-related medical a resource is considered available when the client or spouse:
(a) Owns the resource; and
(b) Has the authority to convert the resource to cash; and
(c) Is not legally restricted from using the resource for the person's support and maintenance.
(4) For an SSI-related client a resource is available on the first day of the month following receipt of the resource.
(5) Available resources may be:
(a) Excluded which means it is not counted toward the resource limit;
(b) Partially excluded:
(i) The resource is not counted up to a specified dollar amount; but
(ii) Any amount over that amount is counted toward the resource limit; or
(c) Countable which means the entire value is counted toward the resource limit.
(6) For medical programs, if the household consists of more than one medical assistance unit (MAA), the resources for each MAA are considered according to the related program.
(7) An assistance unit's resources are determined by:
(a) Disregarding all excluded resources;
(b) Adding the value of:
(i) Resources that are in excess of the excluded dollar amounts; and
(ii) Resources that are countable; and
(c) Comparing the total countable resources to the applicable resource limit for the assistance unit;
(d) If the total resources exceed the applicable resource limit, the assistance unit's benefits are denied or terminated except for institutional medical programs as described in WAC 388-513-1395.
(8) The value of a resource is the equity value. The equity value is the amount a person could receive for the resource (fair market value) minus the legal amount still owing. Limits for countable resources are:
(a) For cash assistance and TANF-related medical, an eligible assistance unit's countable resources must be at or below one thousand dollars;
(b) For food assistance, an eligible assistance unit's countable resources must be at or below:
(i) Three thousand dollars for any household with an elderly member; or
(ii) Two thousand dollars for all other households.
(9) For food assistance, assistance units in which all members are receiving cash assistance or SSI do not have to meet the resource limits in subsection (8)(b) of this section)) The following definitions apply to this chapter:
(a) "We" means the department of social and health services.
(b) "You" means a person applying for or getting benefits from the department.
(c) "Fair market value (FMV)" means the price at which you could reasonably sell the resource.
(d) "Equity value" means the FMV minus any amount you owe on the resource.
(e) "Community property" means a resource in the name of the husband, wife, or both.
(f) "Separate property" means a resource of a married person that one of the spouses:
(i) Had possession of and paid for before they were married;
(ii) Acquired and paid for entirely out of income from separate property; or
(iii) Received as a gift or inheritance.
(2) We count a resource to decide if your assistance unit (AU) is eligible for cash assistance, family medical programs, or basic food when:
(a) It is a resource we must count under WAC 388-470-0045 and 388-470-0055;
(b) You own the resource. We consider you to own a resource if:
(i) Your name is on the title to the property; or
(ii) You have property that doesn't have a title; and
(c) You have control over the resource, which means the resource is actually available to you; and
(d) You could legally sell the resource or convert it into cash within twenty days.
(3) For cash assistance and family medical programs, you must try to make your resources available even if it will take you more than twenty days to do so, unless:
(a) There is a legal barrier; or
(b) You must petition the court to release part or all of a resource.
(4) When you apply for assistance, we count your resources as of:
(a) The date of your interview, if you are required to have an interview; or
(b) The date of your application, if you are not required to have an interview; or
(c) The first day of the month of application, for medical assistance.
(5) If your total countable resources are over the resource limit in subsection (6) through (13) of this section, you are not eligible for benefits.
(6) For cash assistance and applicants for family medical programs, we use the equity value as the value of your resources.
(a) Applicants can have countable resources up to one thousand dollars.
(b) Recipients of cash assistance can have an additional three thousand dollars in a savings account.
(7) Recipients of family medical programs do not have a resource limit.
(8) We do not count your resources for children's medical or pregnancy medical benefits.
(9) For SSI-related medical assistance, see chapter 388-475 WAC.
(10) For clients receiving institutional or wavered services, see chapters 388-513 and 388-515 WAC.
(11) If your household consists of more than one medical assistance unit (MAU), as described in WAC 388-408-0055, we look at the resources for each MAU separately.
(12) If your AU is categorically eligible (CE) as described in WAC 388-414-0001, you do not have a resource limit for basic food.
(13) If your AU is not CE under WAC 388-414-0001, your AU may have countable resources up to the following amount and be eligible for basic food:
(a) Three thousand dollars if your AU has either an elderly or disabled individual; or
(b) Two thousand dollars for all other AUs.
(14) If you own a countable resource with someone who is not in your AU, we count the portion of the resource that you own. If we cannot determine how much of the resource is yours:
(a) For cash assistance, we count an equal portion of the resource that belongs to each person who owns it.
(b) For medical assistance and basic food, we count the entire amount unless you can prove that the entire amount is not available to you.
(15) We assume that you have control of community property and you can legally sell the property or convert it to cash unless you can show that you do not.
(16) We may not consider an item to be separate property if you used both separate and community funds to buy or improve it.
(17) We do not count the resources of victims of family violence when:
(a) The resource is owned jointly with members of the former household; or
(b) Availability of the resource depends on an agreement of the joint owner; or
(c) Making the resource available would place the client at risk of harm.
(18) You may give us proof about a resource anytime, including when we ask for it or if you disagree with a decision we made, about:
(a) Who owns a resource;
(b) Who has legal control of the resource;
(c) The value of a resource;
(d) The availability of a resource; or
(e) The portion of a property you or another person owns.
[Statutory Authority: RCW 74.04.050, 74.04.055, 74.04.057 and 74.08.090. 98-16-044, § 388-470-0005, filed 7/31/98, effective 9/1/98.]
(2) When determining the cash eligibility of an assistance unit, the department includes the countable resources of a financially responsible person who lives in the home even when the person is ineligible or disqualified from receiving cash assistance)) Yes we do. We count the resources of certain people who live in your home, even if they are not getting assistance. Their resources count as part of your resources.
(1) For cash assistance, we count the resources of ineligible, disqualified, or financially responsible people as defined in WAC 388-450-0100.
(2) For basic food, we count the resources of ineligible assistance unit (AU) members as defined in WAC 388-408-0035.
(3) For family and SSI-related medical assistance, we count the resources of financially responsible people as defined in WAC 388-408-0055.
(4) For long term care services, we count the resources of financially responsible people as defined in WAC 388-506-0620.
(5) For cash assistance, medical assistance, and basic food, we also count the resources of an immigrant's sponsor as described in WAC 388-470-0060.
[Statutory Authority: RCW 74.04.050, 74.04.055, 74.04.057 and 74.08.090. 99-09-053, § 388-470-0012, filed 4/19/99, effective 5/20/99.]
(a) Liquid resources such as cash on hand, monies in checking or savings accounts; or
(b) Stocks or bonds minus any early withdrawal penalty.
(2) For TANF/SFA, GA, and TANF/SFA-related medical, the entire value of a motor home is counted as a resource when not used as a residence. For food assistance, a motor home is treated as a vehicle as described in WAC 388-470-0075.
(3) A resource owned with a person other than a spouse, contract vendor, mortgage or lien holder (jointly owned) is counted as follows:
(a) For cash assistance and TANF-related medical, the client's share of the equity value; or
(b) For food assistance, resources jointly owned by separate assistance units are considered available in their entirety to each assistance unit.
(4) A client may provide evidence that all or a portion of a jointly owned resource:
(a) Belongs to the other owner; and
(b) Is held for the benefit of the other owner)) to decide if you are eligible for benefits under WAC 388-470-0005:
(a) Liquid resources not specifically excluded in subsection (2) below. These are resources that are easily changed into cash. Some examples of liquid resources are:
(i) Cash on hand;
(ii) Money in checking or savings accounts;
(iii) Money market accounts or certificates of deposit (CDs) less any withdrawal penalty;
(iv) Available retirement funds or pension benefits, less any withdrawal penalty;
(v) Stocks, bonds, annuities, or mutual funds less any early withdrawal penalty;
(vi) Available trusts or trust accounts; or
(vii) Lump sum payments as described in chapter 388-455 WAC.
(b) The cash surrender value (CSV) of whole life insurance policies.
(c) The CSV over fifteen hundred dollars of revocable burial insurance policies or funeral agreements.
(d) The amount of a child's irrevocable educational trust fund that is over four thousand dollars per child.
(e) Funds withdrawn from an individual development account (IDA) if they were removed for a purpose other than those specified in RCW 74.08A.220.
(f) Any real property like a home, land or buildings not specifically excluded in subsection (3) below.
(g) The equity value of vehicles as described in WAC 388-470-0070.
(h) Personal property that is not:
(i) A household good;
(ii) Needed for self-employment; or
(iii) Of "great sentimental value," due to personal attachment or hobby interest.
(i) Resources of a sponsor as described in WAC 388-470-0060.
(j) For cash assistance only, sales contracts.
(2) The following types of liquid resources do not count when we determine your eligibility:
(a) Bona fide loans, including student loans;
(b) Basic food benefits;
(c) Income tax refunds in the month of receipt;
(d) Earned income tax credit (EITC) in the month received and the following month;
(e) Advance earned income tax credit payments;
(f) Individual development accounts (IDAS) established under RCW 74.08A.220;
(g) Retroactive cash benefits or TANF/SFA benefits resulting from a court order modifying a decision of the department;
(h) Underpayments received under chapter 388-410 WAC;
(i) Educational benefits that are excluded as income under WAC 388-450-0035;
(j) The income and resources of an SSI recipient;
(k) A bank account jointly owned with an SSI recipient if SSA already counted the money for SSI purposes;
(l) Foster care payments provided under Title IV-E and/or state foster care maintenance payments;
(m) Adoption support payments;
(n) Self-employment accounts receivable that the client has billed to the customer but has been unable to collect; and
(o) Resources specifically excluded by federal law.
(3) The following types of real property do not count when we determine your eligibility:
(a) Your home and the surrounding property that you, your spouse, or your dependents live in;
(b) A house you do not live in, if you plan on returning to the home and you are out of the home because of:
(i) Employment;
(ii) Training for future employment;
(iii) Illness; or
(iv) Natural disaster or casualty.
(c) Property that:
(i) You are making a good faith effort to sell;
(ii) You intend to build a home on, if you do not already own a home;
(iii) Produces income consistent with its fair market value, even if used only on a seasonal basis; or
(iv) A household member needs for employment or self-employment. Property excluded under this section and used by a self-employed farmer or fisher retains its exclusion for one year after the household member stops farming or fishing.
(d) Indian lands held jointly with the Tribe, or land that can be sold only with the approval of the Bureau of Indian Affairs.
(4) If you deposit excluded liquid resources into a bank account with countable liquid resources, we do not count the excluded liquid resources for six months from the date of deposit.
(5) If you sell your home, you have ninety days to reinvest the proceeds from the sale of a home into an exempt resource.
(a) If you do not reinvest within ninety days, we will determine whether there is good cause to allow more time. Some examples of good cause are:
(i) Closing on your new home is taking longer than anticipated;
(ii) You are unable to find a new home that you can afford;
(iii) Someone in your household is receiving emergent medical care; or
(iv) Your children are in school and moving would require them to change schools.
(b) If you have good cause, we will give you more time based on your circumstances.
(c) If you do not have good cause, we count the money you got from the sale as a resource.
[Statutory Authority: RCW 74.08.090 and 74.04.510. 99-16-024, § 388-470-0045, filed 7/26/99, effective 9/1/99. Statutory Authority: RCW 74.04.050, 74.04.055, 74.04.057 and 74.08.090. 98-16-044, § 388-470-0045, filed 7/31/98, effective 9/1/98.]
(1) Excluded funds that are deposited in an account with countable funds (commingled) for more than six months from the date of deposit.
(2) Lump sums such as insurance settlements, refunded cleaning and damage deposits.
(3) Resources of ineligible household members, as described in WAC 388-408-0035(9))) (1) If your AU is not categorically eligible (CE) for basic food under WAC 388-414-0001, we count the following resources toward your AU's resource limit for basic food to decide if you are eligible for benefits under WAC 388-470-0005:
(a) Liquid resources. These are resources that are easily changed into cash. Some examples of liquid resources are:
(i) Cash on hand;
(ii) Money in checking or savings accounts;
(iii) Money market accounts or certificates of deposit (CDs) less any withdrawal penalty;
(iv) Keogh plans that do not involve a contractual agreement with someone outside of the assistance unit, less any withdrawal penalty;
(v) Individual Retirement Accounts (IRAs) less any withdrawal penalty;
(vi) Stocks, bonds, annuities, or mutual funds less any early withdrawal penalty;
(vii) Available trusts or trust accounts; or
(viii) Lump sum payments. A lump sum payment is money owed to you from a past period of time that you get but do not expect to get on a continuing basis.
(b) Nonliquid resources, personal property, and real property not specifically excluded in subsection (2) below.
(c) Vehicles as described in WAC 388-470-0075.
(d) The resources of a sponsor as described in WAC 388-470-0060.
(2) The following resources do not count toward your resource limit:
(a) Your home and the surrounding property that you, your spouse, or your dependents live in;
(b) A house you do not live in, if you plan on returning to the home and you are out of the home because of:
(i) Employment;
(ii) Training for future employment;
(iii) Illness; or
(iv) Natural disaster or casualty.
(c) Property that:
(i) You are making a good faith effort to sell;
(ii) You intend to build a home on, if you do not already own a home;
(iii) Produces income consistent with its fair market value, even if used only on a seasonal basis;
(iv) Is essential to the employment or self-employment of a household member. Property excluded under this section and used by a self-employed farmer or fisher retains its exclusion for one year after the household member stops farming or fishing; or
(v) Is essential for the maintenance or use of an income-producing vehicle; or
(vi) Has an equity value equal to or less than half of the resource limit as described in WAC 388-470-0005.
(d) Household goods
(e) Personal effects;
(f) Life insurance policies, including policies with cash surrender value (CSV);
(g) One burial plot per household member;
(h) One funeral agreement per household member, up to fifteen hundred dollars;
(i) Pension plans or retirement funds not specifically counted in subsection (1) above;
(j) Sales contracts, if the contract is producing income consistent with its fair market value;
(k) Government payments issued for the restoration of a home damaged in a disaster;
(l) Indian lands held jointly with the Tribe, or land that can be sold only with the approval of the Bureau of Indian Affairs;
(m) Nonliquid resources that have a lien placed against them;
(n) Earned Income Tax Credits (EITC):
(i) For twelve months, if you were a basic food recipient when you got the EITC and you remain on basic food for all twelve months; or
(ii) The month you get it and the month after, if you were not getting basic food when you got the EITC.
(o) Energy assistance payments or allowances;
(p) The resources of a household member who gets SSI, TANF/SFA, or GA benefits; and
(q) Resources specifically excluded by federal law.
(3) If you deposit excluded liquid resources into a bank account with countable liquid resources, we do not count the excluded liquid resources for six months from the date of deposit.
(4) If you sell your home, you have ninety days to reinvest the proceeds from the sale of a home into an exempt resource.
(a) If you do not reinvest within ninety days, we will determine whether there is good cause to allow more time. Some examples of good cause are:
(i) Closing on your new home is taking longer than anticipated;
(ii) You are unable to find a new home that you can afford;
(iii) Someone in your household is receiving emergent medical care; or
(iv) Your children are in school and moving would require them to change schools.
(b) If you have good cause, we will give you more time based on your circumstances.
(c) If you do not have good cause, we count the money you got from the sale as a resource.
[Statutory Authority: RCW 74.08.090 and 74.04.510. 99-16-024, § 388-470-0055, filed 7/26/99, effective 9/1/99. Statutory Authority: RCW 74.04.050, 74.04.055, 74.04.057 and 74.08.090. 98-16-044, § 388-470-0055, filed 7/31/98, effective 9/1/98.]
The following sections of the Washington Administrative Code are repealed:
| WAC 388-470-0010 | How to determine who owns a resource. |
| WAC 388-470-0015 | Availability of resources. |
| WAC 388-470-0020 | Excluded resources. |
| WAC 388-470-0025 | Excluded resources for cash assistance. |
| WAC 388-470-0030 | Excluding a home as a resource. |
| WAC 388-470-0035 | Excluded resources for food assistance. |
| WAC 388-470-0050 | Resources that count. |
| WAC 388-470-0065 | Individual development accounts for TANF recipients. |